The economy is on the cusp of a recession as the economy contracted 0.9% in the second quarter after a 1.6% decline in the first quarter. In addition, the Federal Reserve recently raised the benchmark interest rates by 75 basis points to bring down record-high inflation, exacerbating recession risks.
Furthermore, according to purchasing managers' surveys, U.S. business activity declined sharply in July. The composite U.S. purchasing managers index stood at 47.5 in July, with a reading below 50 indicating a contraction.
